India's Defense Production and Indigenous Manufacturing Growth

India’s defense production hit a record high this year. It clocked in at Rs 1.78 lakh crore for FY 2025-26, Defence Minister Rajnath Singh announced. This really shows how much indigenous manufacturing capabilities are growing in the country.
The context isn't just about the final number though. The defense budget itself got a serious bump too. They increased it to Rs 7.85 lakh crore for FY2026-27. That’s up from Rs 6.81 lakh crore last year. A solid fifteen point three percent increase there.
Most of that production value, about seventy-six percent , came from Defence Public Sector Undertakings and other PSUs. That’s the backbone, you know?
Rajnath Singh pointed to steady growth under Prime Minister Modi. It wasn't just a blip. He noted how long this trend has been going on. Production has increased by one hundred ten percent since FY2020-21 when it was only Rs 84,643 crore.
Indigenous production has nearly quadrupled over the last decade. That’s something worth watching. The value of domestic defense manufacturing climbed from just Rs 43,746 crore back in FY2013-14 to where we are now. It's clear that things are expanding across the whole industrial base. This growth comes from efforts by the Department of Defence Production and everyone else involved.
“Indigenous defence production has increased nearly fourfold,” Singh posted on X. He tied this rise directly to collective effort, emphasizing how much India’s defense industrial base is expanding right now. It's a clear sign.
Now, look at where the private sector fits in. They actually recorded the highest contribution ever for FY 2025-26. Around Rs 42,000 crore . That shows their growing role in military manufacturing. This rise happens while the government keeps pushing hard on developing indigenous design and production capabilities across the board.
And this domestic manufacturing boost helped exports too. Defence exports hit a record mark of Rs 38,424 crore during that financial year. It’s all connected, really.
It reflects participation from DPSUs, private companies, MSMEs, and startups. They are spread out across aerospace, missiles, naval systems, electronics, ammunition all these segments are expanding the industrial base. It supports that push for self-reliance.
The Minister said this sustained rise demonstrates a much stronger manufacturing ecosystem overall. The private sector's share jumped to twenty-four percent of total defense production in 2025-26, up from twenty-two percent last year. Policy support, new initiatives, and greater private involvement seemed to drive this progress, he suggested. He felt confident the industry will keep expanding going forward.
Prime Minister Modi also weighed in. He welcomed these growing capabilities. He stressed the real transformation over the last twelve years driven by technology and domestic production. It was a significant stride in defense manufacturing, he said. A glimpse of what’s been achieved.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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